45A.045 Authority of cabinet -- Authority to promulgate administrative
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/ky/45a-045A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
regulations.
(1)The Finance and Administration Cabinet shall serve as the central procurement and
contracting agency of the Commonwealth.
(a)The cabinet shall require all agencies to furnish an estimate of specific needs
for supplies, materials, and equipment to be purchased by competitive bidding
for the purpose of permitting scheduling of purchasing in large volume. The
cabinet shall establish and enforce schedules for purchasing supplies,
materials, and equipment. In addition, prior to the beginning of each fiscal
year all agencies shall submit to the Finance and Administration Cabinet an
estimate of all needs for supplies, materials, and equipment during that year
which will have to be required through competitive bidding.
(b)The Finance and Administration Cabinet shall have power, with the approval
of the secretary of the Finance and Administration Cabinet, to transfer
between departments, to salvage, to exchange, and to condemn supplies,
equipment, and real property.
(c)The Finance and Administration Cabinet shall attempt in every practicable
way to ensure that state agencies are fulfilling their business needs through the
application of the best value criteria.
(2)The Finance and Administration Cabinet shall recommend regulations, rules, and
procedures and shall have supervision over all purchases by the various spending
agencies, except as otherwise provided by law, and, subject to the approval of the
secretary of the Finance and Administration Cabinet, shall promulgate
administrative regulations to govern purchasing by or for all these agencies. The
cabinet shall publish a manual of procedures which shall be incorporated by
reference as an administrative regulation pursuant to KRS Chapter 13A. This
manual shall be distributed to agencies and shall be revised upon issuance of
amendments to these procedures. No purchase or contract shall be binding on the
state or any agency thereof unless approved by the Finance and Administration
Cabinet or made under general administrative regulations promulgated by the
cabinet.
(3)The Finance and Administration Cabinet shall purchase or otherwise acquire, or,
with the approval of the secretary, may delegate and control the purchase and
acquisition of the combined requirements of all spending agencies of the state,
including, but not limited to, interests in real property, contractual services, rentals
of all types, supplies, materials, equipment, and services.
(4)The Finance and Administration Cabinet shall sell, trade, or otherwise dispose of
any interest in real property of the state which is not needed, or has become
unsuitable for public use, or would be more suitable to the public's interest if used
in another manner, as determined by the secretary of the Finance and
Administration Cabinet. The determination of the secretary of the Finance and
Administration Cabinet shall be set forth in an order and shall be reached only after
review of a written request by the agency desiring to dispose of the property. This
request shall describe the property and state the reasons why the agency believes
the property should be disposed. All instruments required by law to be recorded
which convey any interest in any real property so disposed of shall be executed and
signed by the secretary of the Finance and Administration Cabinet and approved by
the Governor. Unless the secretary of the Finance and Administration Cabinet
deems it in the best interest of the state to proceed otherwise, all interests in real
property shall be sold either by invitation of sealed bids or by public auction. The
selling price of any interest in real property shall not be less than the appraised
value thereof as determined by the cabinet, or the Transportation Cabinet for the
requirements of that cabinet.
(5)The Finance and Administration Cabinet shall sell, trade, or otherwise dispose of all
personal property of the state that is not needed, or has become unsuitable for
public use, or would be more suitable to the public's interest if used in another
manner, or, with the approval of the secretary, may delegate the sale, trade, or other
disposal of the personal property. In the event the authority is delegated, the method
for disposal shall be determined by the agency head, in accordance with
administrative regulations promulgated by the Finance and Administration Cabinet,
and shall be set forth in a document describing the property and stating the method
of disposal and the reasons why the agency believes the property should be
disposed of. In the event the authority is not delegated, requests to the Finance and
Administration Cabinet to sell, trade, or otherwise dispose of the property shall
describe the property and state the reasons why the agency believes the property
should be disposed of. The method for disposal shall be determined by the Division
of Surplus Properties, and approved by the secretary of the Finance and
Administration Cabinet or his or her designee.
(6)The Finance and Administration Cabinet shall exercise general supervision and
control over all warehouses, storerooms, and stores and of all inventories of
supplies, services, and construction belonging to the Commonwealth. The cabinet
shall promulgate administrative regulations to require agencies to take and maintain
inventories of plant property, buildings, structures, other fixed assets, and
equipment. The cabinet shall conduct periodic physical audits of inventories.
(7)The Finance and Administration Cabinet shall establish and maintain programs for
the development and use of purchasing specifications and for the inspection,
testing, and acceptance of supplies, services, and construction.
(8)Nothing in this section shall prevent the Finance and Administration Cabinet from
negotiating with vendors who maintain a General Services Administration price
agreement with the United States of America or any agency thereof. No contract
executed under this provision shall authorize a price higher than is contained in the
contract between the General Services Administration and the vendor affected.
(9)Except as provided in KRS Chapters 175, 176, 177, and 180, and subject to the
provisions of this code, the Finance and Administration Cabinet shall purchase or
otherwise acquire all real property determined to be needed for state use, upon
approval of the secretary of the Finance and Administration Cabinet as to the
determination of need and as to the action of purchase or other acquisition. The
amount paid for this real property shall not exceed the appraised value as
determined by the cabinet or the Transportation Cabinet (for such requirements of
that cabinet), or the value set by eminent domain procedure. Subject to the
provisions of this code, real property or any interest therein may be purchased,
leased, or otherwise acquired from any officer or employee of any agency of the
state upon a finding by the Finance and Administration Cabinet, based upon a
written application by the head of the agency requesting the purchase, and approved
by the secretary of the Finance and Administration Cabinet and the Governor, that
the employee has not either himself or herself, or through any other person,
influenced or attempted to influence either the agency requesting the acquisition of
the property or the Finance and Administration Cabinet in connection with such
acquisition. Whenever such an acquisition is consummated, the request and finding
shall be recorded and kept by the Secretary of State along with the other documents
recorded pursuant to the provisions of KRS Chapter 56.
(10)The Finance and Administration Cabinet shall maintain records of all purchases and
sales made under its authority and shall make periodic summary reports of all
transactions to the secretary of the Finance and Administration Cabinet, the
Governor, and the General Assembly. The Finance and Administration Cabinet
shall also report trends in costs and prices, including savings realized through
improved practices, to the above authorities. The Finance and Administration
Cabinet shall also compile an annual report of state purchases by all spending
agencies in the state's statewide accounting and reporting system. The report format
shall include, but not be limited to, dollar amount, volume, type of purchase, and
vendor.
(11)For capital construction projects, subject to the provisions of this code and KRS
45A.180, the procurement may be on whichever of the following alternative project
delivery methods, in the judgment of the secretary of the Finance and
Administration Cabinet after first considering the traditional design-bid-build
project delivery method, offers the best value to the taxpayer:
(a)A design-build basis; or
(b)A construction management-at-risk basis.
Proposals shall be reviewed by the engineering staff to assure quality and value, and
compliance with procurement procedures. All specifications shall be written to
promote competition. Nothing in this section shall prohibit the procurement of
phased bidding or construction manager-agency services.
(12)The Finance and Administration Cabinet shall have control and supervision over all
purchases of energy-consuming equipment, supplies, and related equipment
purchased or acquired by any agency of the state as provided in this code, and shall
promulgate administrative regulations to designate the manner in which an energy-
consuming item will be purchased so as to promote energy conservation and
acquisition of energy efficient products. Major energy components shall be
amortized on a seven
(7)to ten
(10)years' recovery basis and shall take into
consideration the projected cost of fuel. The Finance and Administration Cabinet, in
consultation with the Cabinet for Economic Development, shall conduct a thorough
economic feasibility analysis on any major energy-using component of at least three
million (3,000,000) BTU's per hour heat input and shall issue a certificate of
economic feasibility prior to the Finance and Administration Cabinet's purchasing
or retrofitting any such component that utilizes any fuel other than coal. The economic feasibility analysis shall consist of life-cycle cost comparisons of a component that would utilize coal and one(s) that would utilize any fuel other than coal. For the analysis, the Finance and Administration Cabinet shall provide detailed estimates of equipment purchase price, installation cost, annual operation and maintenance costs, and usage patterns of energy-using components.